Chesapeake Energy Corporation (NYSE: CHK) is having an incredibly strong start to the trading session this morning, and for good reason. The company is centered in the energy and oil industry, and oil is headed up thanks to news coming out of OPEC. Of course, this is exciting news for investors who are sending OPEC screaming for the top. Today, we’ll talk about:
- The OPEC news;
- what we’re seeing out of CHK as a result; and
- what we’ll be watching for ahead
OPEC Sends CHK Up
As mentioned above, Chesapeake Energy, along with others in the oil and energy space are having a strong day in the market today as news breaks surrounding an OPEC decision. Recently, fears were spreading that during today’s meeting, OPEC would lift all holds on product, allowing massive increases in the production of oil. While OPEC did allow for some increase in production, the world’s leading oil cartel kept caps in place, leading to gains in oil and stocks in the class of CHK.
In a recent announcement, OPEC announced that the oil ministers had agreed to moderate increases in oil production. While some analysts expected the worst from the OPEC meeting, the oil cartel only increased production on a modest level in the spirit of compromise as they say.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Chesapeake Energy, while no news was released by the company, news of increasing oil prices means that the company will have a stronger opportunity to generate revenue growth. Of course, that’s an exciting concept for investors who are sending the stock screaming for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:02), CHK is trading at $5.07 per share after a gain of $0.20 per share or 4.00% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CHK. In particular, we’re interested in following the story surrounding the price of oil as there is a strong correlation between the two assets. Noneteheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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